The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.

The New York Fed engages with individuals, households and businesses in the Second District and maintains an active dialogue in the region. The Bank gathers and shares regional economic intelligence to inform our community and policy makers, and promotes sound financial and economic decisions through community development and education programs.

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has announced amendments to its Regulation D (Reserve Requirements of Depository Institutions) to allow U.S. branches and agencies of foreign banks and Edge and Agreement corporations to choose whether to aggregate reserve balances on a nationwide basis with a single pass-through correspondent or to continue to maintain reserve balances on a same-state/same-District basis as they do today.

The amendments are effective January 1, 1998.

The amendments also update and clarify the pass-through rules in Regulation D for all institutions. These amendments will facilitate interstate banking and branching and eliminate certain restrictions applicable to pass-through arrangements.

A copy of the amendments, effective January 1, 1998, as published in the Federal Register of November 5 is available as a file (pdf - 39kb). Questions on this matter may be directed to the persons specified in the notice or, at this Bank, to Richard Gelson Vice President.